FireDream

Stopping Foreclosure

• Did you take out a sub-prime adjustable rate mortgage, commonly referred to as an ARM, between the start of 2005 and July 30, 2007?
• Is your sub-prime ARM set to adjust between January 1, 2008 and July 31, 2010?
• Do you occupy the home that this sub-prime ARM is attached to?
• Are you afraid of not being able to make your mortgage payment once your ARM adjusts?
• Would you like to lock in your fixed period, or introductory, rate for an additional 5 years?

If you answered yes to these 5 questions, you’re not alone.Nearly 2 million borrowers, just like you, took out a mortgage, just like yours, and are now facing the fact that without some kind of help they will lose their home to foreclosure in the not too distant future.

Mark Zandi, the chief economist for Moody’s Economy.com, said recently,”this is the worst housing downturn in the post World War II period.”With the real estate market threatening to throw the economy into recession, the Bush administration has stepped up to make an effort at thwarting an impending recession by getting counselors, servicers, investors, and other mortgage market participants to work together to help prevent many home owners from losing their homes to foreclosure.The most drastic measure has been their proposal to freeze interest rates for 5 years on mortgages that fit the specific criteria outlined in the bullet points above.

The hope is that you’ll have time to refinance your existing ARM to a mortgage that you can afford for the long term. Or, that the real estate market will have the time it needs to be able to recuperate and allow you to sell your home and move into something else.

So, what can you do? To start, contact your existing lender and find out how to get your interest rate fixed for the next 5 years. Again, you have to meet the specific criteria outlined above. Be prepared; to sit on hold for what may seem like an eternity, get disconnected (either by accident or otherwise), and talk with many people who may not be able to tell you which way is up from down.Don’t give up!!! And, start early, Don’t wait till the eleventh hour before you start trying to get something done to remedy the situation.

The Federal Housing Administration, or FHA, has also eased some of their lending requirements making it easier for those with sub-prime ARM’s to be able to refinance to a more manageable fixed rate mortgage. You can get additional information by visiting www.HOPENOW.com or by calling the HOPE NOW hotline at 888-995-HOPE. The HOPE NOW website or hotline can also direct you to other non-profit agencies that are geared up to assist anyone who might be facing foreclosure.